Intraday trading is probably one of the most competitive playing grounds in the share market. This is an arena where one could make fortunes if they make the right set of moves. Suppose you are a beginner planning to foray into intraday trading. In that case, this blog will help you understand the critical criteria Involved and the steps involved in getting started with intraday trading.
The steps involved in Intraday trading:
- Open Demat and Trading account:
The first step towards becoming an intraday trader is opening a trading and Demat account. While the trading account lets you buy and sell the shares, the Demat account enables you to hold them till you sell them in the share market. Tradeplus provides an all-in-one investment account at absolutely no cost. The process of opening an account with us is entirely online, and all you need is to keep your PAN card, Aadhar card ready and spare a few minutes. If you are a Non-Resident Indian, we provide an extensive range of services that will empower you to trade like a Resident.
- Study about the stocks to buy and sell:
Once you have opened the required accounts, you are ready to trade. However, intraday day trading is no child’s play and requires extensive research about the stocks you are interested in. As a trader, you can study the stocks from the company’s website and other sources available in the market. We have discussed in detail the essential criteria needed to be checked while picking a stock to purchase. You can read about it as you scroll down further.
- Start Trading:
If you are done studying the stocks to purchase, congratulations, you are now ready to start trading. However, you need the help of a brokerage firm to facilitate trading. Tradeplus can be the ideal brokerage to help you become a successful intraday trader. We also provide you with our trading platform loaded with several advanced analytical and charting tools. These tools will help you make better decisions based on real-time data and intelligence.
Criteria to consider while studying stocks to invest:
- Be aware of the Shares Volume
The volume of the stocks is one of the most important factors to consider when trading intraday. Volume is represented by the total number of shares traded in a specific market at any given time. It is generally advised to buy stocks with a high volume.
- Keep an eye on Stocks of the Day.
A few stocks are expected to perform well if there is good news. These stocks are expected to move in either direction with high volume. These shares are suitable for intraday trading.
- Watch the Week’s Movement
Examine the performance of stocks that are consistently closing in the negative or positive for the previous week. An examination of this movement will assist you in selecting stocks for intraday trading.
- Go for shares with broken Resistance Level.
Keep your eyes on stocks that have broken through resistance levels and are trending upward. These stocks are among the most popular. Trading in these types of stocks will help you gain success in Intraday trading.
- Trade-in only a Few Stock lists
A few intraday traders specialize in trading specific stocks. This is because these traders conduct extensive research on the share movement. Similarly, you should have your own set of stock lists and constantly study them. This is one of the most common intraday strategies used by traders.
- Monitor the Top Gainers and Losers
While some stocks are top gainers, others are top losers. Such stocks may have relatively good movements. However, to begin trading, keep a close eye on them.
- Check liquidity at Various ranges.
When choosing liquid stocks, keep in mind the liquidity at various price levels. Some stocks are highly liquid at lower price levels, but the volume drops dramatically once they reach a specific price zone. Understanding the variability of liquidity at various price levels will assist you in purchasing these stocks at the right time.
Successful intraday traders have trained their eyes and senses to pick the best shares for intraday trading every time. To make a profit in intraday trading, you must select the right stocks; therefore, you must make a technical analysis of your ally. With time, you’ll figure out how to pick the best intraday stocks. Make sure your decisions are based on data. Also, never let your emotions make decisions for you.